Pacifica voters nix utility tax surcharge

1997-07-02 04:00:00 PDT PACIFICA -- PACIFICA - Voters here overwhelmingly defeated a utility tax that was intended to provide $1.2 million a year to help maintain city services at current levels.

Measure H was soundly beaten by a 3-to-2 ratio in Tuesday's special election, which saw a turnout of about 30 percent, or more than 6,600 votes.

"Maybe people don't trust government, but it was a democratic vote, and the voters decided," Mayor Maxine Gonsalves said. "The town's going to suffer."

Measure H called for a 6.5 percent surcharge to be collected from all local utility bills, which would apply to telephone, water, sewer, cable TV and garbage bills until the end of 2000.

Under Proposition 218, a statewide measure passed by voters in November, a majority of voters must approve any new imposition of general taxes by local governments.

Measure H supporters argued that the tax would not be used for new services and was necessary to offset a loss of more than $4.2 million in property taxes and other city revenues shifted to the state beginning in the early 1990s.

They contended passage was necessary to ensure funding of police and fire services at existing levels, to maintain recreation programs and parks and keep services for seniors.

Opponents argued that Measure H did not guarantee the extra revenues would be earmarked for particular uses. They also objected to the blanket exemption for all residents 65 years and older, regardless of income.

The new tax would have raised an additional $1.2 million for the city's general fund, according to City Manager David Carmany. It would have been in addition to a 6.5 percent utility tax already imposed on PG&E bills that provides the city with about $1 million a year.

Carmany said the measure's defeat would cost the city eight jobs, including four police officers and a firefighter, through attrition.&lt;